Using a mobile device in a commercial transaction

ABSTRACT

A first device may be used to complete a transaction by receiving information for completing a transaction between a first entity associated with the first device and a second entity associated with a second device, causing a payment to be made to the second entity by communicating with a third device via a communications network, receiving an encrypted payment confirmation from the third device, and providing the encrypted payment confirmation to the second device, thereby completing the transaction.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. Ser. No. 13/416,397 USING AMOBILE DEVICE IN A COMMERCIAL TRANSACTION, filed Mar. 9, 2012, which isa non-provisional of U.S. Provisional Patent Application 61/560996,titled Optical Communication, filed Nov. 17, 2011, which is incorporatedby reference.

BACKGROUND

Wireless mobile devices have changed many aspects of daily life. Forexample, laptop computers, PDAs, tablets and mobile phones utilize radiofrequency (RF) links to allow people to create and consume content fromany place where network access is available, and to communicate with oneanother using voice, video, text messaging and email. Many of thesedevices can also be used for electronic commerce. Electronic commercegenerally includes both remote transactions, e.g., visiting a websitevia a web browser, and point-of-sale type transactions. Remotetransactions typically involve a wireline connection, and may involve along range wireless access link. A point-of-sale type transactiontypically involves short range wireless communication and a wirelineback-end. For example, a mobile phone can be used to make a payment bycommunicating credit or debit card information to a vendor, or bydirecting a third party to make a payment to the vendor. The ability tomake point-of-sale payments with a mobile wireless device potentiallyoffers the convenience of not having to carry cash and credit/debitcards.

SUMMARY

In accordance with an aspect a method comprises: receiving, with a firstdevice, information for completing a transaction between a first entityassociated with the first device and a second entity associated with asecond device; the first device causing a payment to be made to thesecond entity by communicating with a third device via a communicationsnetwork; the first device receiving an encrypted payment confirmationfrom the third device; and the first device providing the encryptedpayment confirmation to the second device, thereby completing thetransaction. In some implementations the information for completing thetransaction is encrypted and comprises a sum required to complete thetransaction, and comprising the first device providing the encryptedinformation for completing the transaction to the third device. Someimplementations comprise the first device indicating to the third devicea sum associated with the payment. Some implementations comprise thethird device decrypting the information for completing the transaction,and comparing the sum required to complete the transaction with theindicated sum associated with the payment. Some implementations comprisethe third device providing the encrypted payment confirmation to thefirst device in response to determining that the sum required tocomplete the transaction matches the indicated sum associated with thepayment. Some implementations comprise the encrypted paymentconfirmation indicating an amount paid.

In accordance with an aspect an apparatus comprises: a first device thatreceives information for completing a transaction between a first entityassociated with the first device and a second entity associated with asecond device, wherein the first device causes a payment to be made tothe second entity by communicating with a third device via acommunications network, and wherein the first device receives anencrypted payment confirmation from the third device, and wherein thefirst device provides the encrypted payment confirmation to the seconddevice, thereby completing the transaction. In some implementations theinformation for completing the transaction is encrypted and comprises asum required to complete the transaction, and wherein the first deviceprovides the encrypted information for completing the transaction to thethird device. In some implementations the first device indicates to thethird device a sum associated with the payment. In some implementationsthe third device decrypts the information for completing thetransaction, and compares the sum required to complete the transactionwith the indicated sum associated with the payment. In someimplementations the third device provides the encrypted paymentconfirmation to the first device in response to determining that the sumrequired to complete the transaction matches the indicated sumassociated with the payment. In some implementations the encryptedpayment confirmation comprises an amount paid.

Some aspects can advantageously be implemented using existing mobiledevices. For example, programs for generating and displaying the opticalrepresentation, reading the optical representation, and translating theoptical representation into the original data may be implemented inapplications which can be downloaded to mobile phones, PDAs, tablets andlaptops, e.g., from “app stores” such as Amazon Appstore, Android and/orApple. Although wireline connectivity could be utilized, mobile devicesthat are WiFi enabled or have built in wireless (3G) capability areparticularly suitable for generating and presenting the image to make apayment. The widespread use and availability of “smartphones” presentsthe possibility that accepting payment via credit/debit card may becomepractical for individuals and organizations for which it is currentlyimpractical. In other words, a mobile phone can be used instead of a POScard reader device to accept payment by credit or debit card. Further,it helps obviate the need for carrying physical cards and cash to makepayments.

Other features and advantages will be apparent from the drawing and thefollowing description.

DESCRIPTION

FIG. 1 is a block diagram which illustrates use of opticalrepresentations to communicate.

FIG. 2 illustrates a buyer and seller in a transaction.

FIG. 3 illustrates an optical representation of data using modulatedlight.

FIG. 4 illustrates a graphical representation of data including a 1Dbarcode.

FIG. 5 illustrates a graphical representation of data including a 2Dbarcode.

FIG. 6 a graphical representation of data including a QR code.

FIG. 7 illustrates a POS seller's device.

FIG. 8 is a flow diagram which illustrates provisioning a new member.

FIG. 9 is a flow diagram which illustrates a transaction.

FIGS. 10 and 11 illustrate user interfaces.

FIG. 12 is a block diagram which illustrates a transaction with anon-communicating seller's device.

FIG. 13 is from the corresponding provisional application.

Referring to FIG. 1, short range communication 99 of data 103 can beaccomplished by generating an optical representation 101 of data 103 (wesometimes refer to an optical representation of data as opticalinformation) using a feature such as a display 108 of a first device 100and sensed using a feature such as an optical sensor 110 of a seconddevice 102 and then read (we sometimes say captured) from the sensedoptical representation 101. The data 103 to be communicated may be in abinary format and stored in non-transitory computer-readable memory 104on the first device 100, or it may be generated each time by a serviceprovider 105 and sent to the first device 100, or it may come from someother source 107. The data may be translated into the opticalrepresentation (that is, an optical representation of the data can begenerated) using processing logic 106 associated with the first device100. In some examples, the optical representation is then rendered (insome cases as a graphical representation such as an image) on thedisplay 108 associated with the first device 100. The displayed opticalrepresentation is sensed by the optical sensor 110 associated with thesecond device 102. The optical information carried in the sensed opticalrepresentation may be translated back into a representation of theoriginal data using corresponding inverse processing logic 112. Theback-translated data 115 can be used, stored, processed, forwarded,merged with other data, or any combination of two or more of thoseactivities and others, in a wide variety of ways. In someimplementations, the back-translated data 115 is stored innon-transitory computer-readable memory 114, transmitted through acommunication network 117 by the second device to another device 116 toprompt some action, or both. The data can be any of a broad range ofdifferent kinds of data. In some examples, the data is transaction datathat relates to, describes, or permits the effectuation of a transactionbetween two parties. For example, the data can be information that canbe used to charge a buyer in a commercial transaction involving goods orservices or both.

A very wide variety of existing and future types of devices could beutilized as the first device 100 or and the second device 102 or both.For example, and without limitation, at least one of the devices mightbe a mobile wireless device that can be easily transported to aparticular location in order to transmit data, receive data, or both.Examples of such devices include, but are not limited to, mobilecomputers, PDAs, tablets, mobile phones, digital displays, cameras(e.g., CCD array), scanners and POS terminals. We sometimes referbroadly to such devices and any other devices that can be hand held andthat have wireless communication capability as hand-held devices. Insome examples, the handheld device is a mobile phone that communicatesusing at least one of a cellular telephone, Wi-Fi, Bluetooth, or similarprotocol, or some combination of two or more of those. In some cases,one of the devices need not be mobile or wireless or handheld or any ofthose, but instead can be temporarily or permanently fixed, stationary,mounted, heavy, too large to move easily, or have other suchcharacteristics. The two devices whatever their form are devices thathave positions, orientations, or locations, or two or more of those,that enable the optical information to be passed directly or indirectlyfrom one to the other optically along a path. In some cases, the path isat least partially through the air.

In some examples, one of both of the devices are carried to a placewhere the optical information can be passed between them, for example,by a hand-held device such as a mobile phone or tablet computing devicebeing carried to a place where it is in proximity to another hand-heldor non-hand-held device to enable the optical information to becommunicated between them.

In some implementations, each of the devices is owned by, controlled by,in the possession of, or otherwise associated with a particular personor entity that is one of the parties to a transaction. When an entity ison one side of the transaction, the entity may be a retail business thatis a seller of goods or services or a person, the other party may be aperson carrying the hand-held device and who is the buyer of the goodsor services, and the transaction may be a purchase and sale between thetwo parties.

In some cases, it may be possible for there to be more than two devicesand more than two parties involved in a transaction, and the opticalinformation may be communicated between pairs of the devices or allthree devices simultaneously.

The communication between any pair of devices can be one-directionalcommunication of data, or two-directional, or may be each of those atdifferent times. We sometimes refer to a device as a sending device oras a receiving device depending on its role in a given communication. Inthis sense, a given device, such as a person's mobile phone can serveits associated person or entity acting as a buyer or as a seller atdifferent times or at the same time.

The creation, communication, and back-translation of the opticalinformation, and combinations of any two or more of those activitieswill require functions or processes to be performed by one or more ofthe devices that may be implemented in computer software 121, 123 thatcan be loaded on non-transitory computer-readable memory 104, 114 andused by processors 106 and 112 in order to, for example, transmit orreceive optical, e.g., graphical, representations of data. Otherfunctions may be associated with auxiliary physical devices such asdevice 200 (FIG. 7) which may include electronic components which areused with one of the devices in order to provide the ability to transmitor receive, for example, graphical representations of data.

In some implementations, each of the devices can be a general purposedevice that includes a process and/or processor and a general purposeoperating system and application software that carries out the neededfunctions. It should also be appreciated that, in some implementations,either or both the sending and receiving devices for a givencommunication may be designed and built specifically for the purposes oftransmitting and receiving optical representations of data or for doingso in carrying out the features that we describe here. However, thepossibility of implementing features with computer software andauxiliary physical devices such as device 200 (FIG. 7) may beadvantageous because replacement of existing infrastructure may bemitigated.

Referring to the implementations illustrated in FIGS. 1 and 2, thesystem and techniques that we describe here enable, for example, ahand-held device 250 to capture optical information received fromanother hand-held device 252, the optical information carryingtransaction data 199 that can be used to charge a buyer 254 in acommercial transaction 258 in which a user 256 of the hand-held deviceis a seller, and (b) to cause the commercial transaction to beconsummated at a remote location 116 or 105 using the transaction data.

In some implementations, transaction data created and communicated byone device to another device is sent to a third device for the purposeof effecting a payment contemplated by the transaction, or to perform awide variety of other activities associated with the transaction or withthe parties to the transaction or with respect to the devices. For thispurpose, one or more of the devices may communicate all or part of thedata over a wide variety of communication channels to one or more thirddevices located anywhere. In some examples, the third devices arelocated remotely or centrally. The third devices may be under thecontrol of other parties and there may be a combination of third deviceslocated in various places and capable of performing payment clearance,billing, collection, and other functions on behalf of one or more of theparties, of one or more financial institutions that maintain accounts onbehalf of one or more of the parties.

The display 108 and receiver 110 (broadly speaking, any part of thedevice that conveys or senses the optical information) may beimplemented using any of a wide variety of technologies that enableoptical information to be formed and conveyed and received and sensed.For example, the display may be implemented using technologies includingbut not limited to liquid crystal displays (LCDs), Cathode Ray Tubes(CRTs) and plasma displays. The display may or may not include a lightsource, e.g., backlighting. If the display lacks a light source then anexternal light source may be utilized to enable communication. Theexternal light source may be provided by the receiving device or someother source such as ambient light or another device. In at least oneembodiment the sending device is a handheld device and the displayincludes a small flat panel 260 (FIG. 4) that can be placed on a planarsurface 206 (FIG. 7). The optical receiver may be implemented usingvarious technologies including but not limited to charge-coupled device(CCD) arrays and laser scanners (e.g., barcode readers). In at least oneembodiment the optical receiver includes a planar surface 206 againstwhich the flat panel display can be placed. The sending device and thereceiving device can be positioned, located, and oriented so that theoptical information can pass directly or indirectly along a path fromone to the other. In some examples, the path includes a segment throughair. For example, a display on a mobile phone can be used to send toanother mobile phone which uses a camera to sense the display.

Referring to FIGS. 1 and 3, in some cases, the optical representation 99may include light 205 which is modulated in intensity (e.g., Li-Fi),pattern, or both to carry the data. For example, and without limitation,light intensity of a source 201 such as a display of a cell phone may bemodulated and detected using a receiver 203 such as a ccd array orbarcode reader. However, use of modulated light is not limited to usewith those components and devices.

Referring to FIGS. 1 and 4 through 6, in some examples, the opticalrepresentation 99 may include a graphical representation which can takeany of a wide variety of forms, shapes, sizes, colors, resolutions,configurations, formats, encodings, or any combination of two or more ofthose, including but not limited to 1D and 2D barcodes. Specificexamples include but are not limited to High Capacity Color Barcodes(HCCBs), matrix barcodes including Quick Response (QR) codes and Tags(or various combinations of two or more of those). A 1D barcode 300 istypically an optical machine-readable representation of data based onvarying the widths and spacings of parallel lines. A 2D barcode 400 istypically an optical machine-readable representation of data based on ageometric pattern. For example, a HCCB is a two dimensional barcodeusing clusters of colored geometric shapes. A matrix barcode is amulti-dimensional barcode. A QR code 500 is a specific type of matrixbarcode developed for the automotive industry. A Microsoft Tag is animplementation of HCCB using 4 colors in a 5×10 grid. The above aremerely examples, and any graphical representation capable of conveyingdata might be used.

Referring again to FIG. 1, in some implementations, generation andreading of the optical representation 101 may be accomplished with knownalgorithms 121, 123 using the processing logic 106, 112. For example,and without limitation, a binary string 199 or other data format can betranslated into a QR code using an open source or commercially availablealgorithm, and translated back into the binary string using an opensource or commercially available algorithm. A receiving device maycontinuously scan for a communication once activated, and upon detectinga communication automatically read it, perform translation, and promptconsummation of a transaction 258 (FIG. 2). However one or more of thoseprocesses might also be made contingent on other input. Algorithms 125,127 which respectively encrypt and decrypt the data might be used, butneed not necessarily be used for all applications. Use of knownalgorithms may facilitate implementation, whereas new algorithms couldbe developed to further enhance security.

In some implementations, the context in which the communication of theoptical information is done can be controlled or structured to reducethe chance of the optical information being intercepted by a device forwhich the communication is not intended or is to be protected. Thecontrol or structuring of the communication can be done by screening orprotecting or obscuring or otherwise constraining access to thecommunication path of the optical information.

Referring to FIGS. 1 and 7, although some combinations of display 108and receiver 110 may be capable of communication at one or more rangesof distance, it may be advantageous to perform communication at closerange in order to enhance security. For example, the devices involved inthe optical communication may be placed in close proximity or directcontact for display and reading such that the graphical representation(or other optical representation) cannot feasibly be viewed and read bya nearby (e.g., rogue) device 262 for which it is not intended. Closeproximity in this sense could mean less than a meter, or less than somefraction of a meter greater than a centimeter or a centimeter or less,or a millimeter or less, for example. Although close proximity mayprotect the optical path of the communication, in some implementations,other techniques could be used to protect the path while permittingcommunication over a distance that could be as large as many meters (oreven far longer distances) or as small as a centimeter or a centimeteror less, or a millimeter or less, for example.

For example, in one embodiment the receiving device 102 includes a POSterminal 200 with an optically transparent or translucent planar window202 on which a first device 100 such as a mobile phone can be placedsuch that the display 108 of the mobile phone faces the window and issubstantially shielded from view other than by an optical receiver 110disposed on an opposing side of the window within an optically opaquehousing 750. An optional cover 204 may be used to further shield thesending device from view. Further, placement of the sending device onthe window or closing the cover may optionally be used to prompt thesending device to begin displaying the graphical representation of thedata. Mirrors and lenses (one lens 752 shown) may be employed toredirect and focus the image for delivery to the optical receiver withinthe housing. A wide variety of other approaches and devices, andcombinations of them, could be used to shield, protect, screen, orconceal the optical information being communicated.

In order to provide context and help illustrate one way in which thedescribed devices have utility, a financial payment system 2000 operatedby the service provider 105 (FIG. 1) will be described with reference toFIGS. 1, 8 and 9. In such a system, payment data (which is a form oftransaction data in some cases) associated with an instrument of payment120, which may include the number of a credit or debit card (forexample, a credit card number), the name of the cardholder, theexpiration date, the identity of the issuing institution, the securitycode, or data contained in the magnetic strip of a credit or debit card,or any other set of information can be represented optically and read byanother device such as a mobile phone or point-of-sale (POS) terminal inorder to cause a payment to occur. A very wide variety of payment datacould be used that is, alone or with other available information,sufficient to enable a payment to be effectuated as part of atransaction. For example, any kind of account identification or paymentauthorization information, whether or not associated with a tangibleinstrument of payment, in any form, quantity, encryption, duration, orcharacter, or any combination of two or more of those, could be part ofpayment data.

People or entities could be permitted to use the system described herewhether or not they are registered as members to use the system. Thesystem could be used on a one-time basis, or by subscription, for a costor without charge, on demand, or in some cases only by pre-arrangement.Referring to FIGS. 1 and 8, in some implementations, in order toprovision a new member 254 or 256 (FIG. 2) the service provider 105determines whether the new member is a buyer, seller, or both in step600. If the new member is a seller then the service provider qualifiesthe seller and obtains various basic information about the seller instep 602, including an identity of an account 603 into which paymentsare to be deposited. Program code including a seller App 607 andoptionally algorithms 123, 127 are loaded onto the seller's device 102(of which there may be more than one), as shown in step 604. Anauxiliary hardware such as optical sensor 110 is installed if necessary.For example, an existing POS terminal may be modified to operate inaccordance with the principles described herein as shown in step 606.Alternatively, a POS terminal could be installed as shown in step 606.

If the new member is a buyer 254 (FIG. 2) then the service provider 105obtains various basic information about the buyer as indicated by step608, including information descriptive of at least one instrument ofpayment 120, e.g., a bank account from which payments can be made, andcredit/debit card information. Based on built-in industry establishedprotocols, the system may categorize credit/debit cards in folders 122such as bank cards, department store credit cards, gas company creditcards, loyalty cards, etc. The organized folders may be providedelectronically to the customer for further customization based oncustomer's preferences. A buyer App 124 is loaded onto the buyer'sdevice or devices 100 as indicated by step 610. The buyer App thendownloads the buyer's instrument(s) of payment information in folders122 to the buyer's device 100 as indicated by step 612, where it isstored. Security settings 612 are implemented on the buyer's device toprotect the downloaded information. By including information associatedwith multiple instruments of payment the system helps to mitigate theneed for carrying multiple physical cards in a wallet or purse, or awallet at all

Referring to FIGS. 1, 9, 10 and 11, in an exemplary transaction 2000when the buyer 254 (FIG. 2) wishes to make a purchase, sale information126 including price 126 is entered on the seller's device 102 asindicated by step 700, e.g., using keypad 1000. The buyer activates thebuyer App 124 on the buyer's device 100 as indicated by step 702.Authentication based on entry of information 128 such as a PIN (e.g.,using keypad 1002) or bio scan may be optionally implemented by thebuyer's device before allowing the process to proceed further. Foradditional verification, the buyer may also specify the amount of thepayment using keypad 1002 for inclusion with information 128.

In some implementations, once authentication requirements are satisfied,the buyer selects an instrument of payment from data 103 using, e.g.,icons 1004, each of which represents the corresponding instrument ofpayment. Optionally, the system may default to a particular instrumentthat may be deselected by the user. The buyer then prompts the payment,such as by pressing a button 130 and placing the buyer's device 100 onor near the seller's device 102. The buyer's App 124 then generates anoptical representation of payment information as described above,including the selected instrument of payment and optionally the paymentamount that was entered by the user and an indication of theauthentication which was performed. The optical representation ispresented on the display of the buyer's device as indicated by step 704.The optical representation is read by the seller's device as indicatedby step 706. The seller's device 102 may have a receive button 1006 toprompt commencement of scanning for the optical representation. Theoptical representation may be converted to an electrical representationand translated into the corresponding payment information by the sellerApp 607 as indicated by step 708.

In some examples, the payment authorization information 129 and saleinformation 126 (and possibly other transaction information) aretransmitted to device 116 via network 117 (optionally via the serviceprovider 105) as indicated by step 710. Optionally, the opticalrepresentation is sent to device 116 or the service provider 105untranslated, or in a state in which some processing has been done onit, but it is not fully translated back to the original transactioninformation. The remaining translation and processing is then performedby device 116 or the service provider 105. The seller's device 102 mayhave a send button 1007 for prompting transmission of data to device 116or the service provider 105. The service provider 105 or device 116verifies the transaction using the indication of authentication (ifany), and checks for a match between the payment amounts entered by theseller and buyer (if any). If the authentication is verified and thepayment amounts match, device 116, which may be associated with afinancial institution, prompts payment 132 to be made to the seller'saccount 603 and sends confirmation notifications 723 to both the buyer'sdevice and seller's device as indicated by step 712. An errornotification is sent to both the buyer's device and seller's device ifthe authentication is not verified or the payment amounts do not match.It should be noted that the service provider 105 may be a bank or otherfinancial institution, e.g., which optionally operates or controlsdevice 116, or a liaison between the buyer's and seller's financialinstitutions. Depending on the implementation, transaction informationincluding payment information and sale information can be sent fromeither only the buyer's device, only the seller's device, or acombination of them. In some cases only partial transaction data couldbe sent from one device and other partial transaction data could be sentfrom another device.

As mentioned earlier, in some cases, both buying and selling capabilitymay be implemented in the same device. In other words, a user's devicecan be used for both making and receiving payments. Some mobile phonesand other wireless mobile devices are equipped with hardware thatenables them to function as either the buyer device or the seller deviceor both. Consequently, the relatively simple and inexpensive procedureof downloading an App may help obviate the need to carry cash andcredit/debit cards in a wallet or purse, and also allow individuals andorganizations to accept instruments of payment in a way that waspreviously impractical.

For purposes of enabling a transaction to be effected, opticalinformation can be sent only one way from a buyer's device to a seller'sdevice, or only one way from a seller's device to a buyer's device, orboth ways between the buyer's device and the seller's device. Also, thetransaction data that is to be sent to a processing location to effectpayment for the transaction may be either only from the seller's device,only from the buyer's device, or in part from each of the devices. Ineach case, some of the information needed for the transaction is passedas optical information from one of the devices to the other devices.

For example, referring to FIG. 12, in some embodiments a buyer's device800 can be used to make payments when a seller's device 801 is“non-communicating,” e.g., lacks network connectivity or for whichnetwork connectivity is unavailable at a given time or for some reasonthe network connectivity cannot or will not be used. In some cases, bothdevices may be non-communicating at a time when optical informationabout a transaction is passed between them; later, when at least one ofthe devices is no longer non-communicating, the transaction may beconsummated or effected through a remote facility. In some instances, itmay be possible to effect payment when both devices arenon-communicating, if a means of payment can be used that does notrequire remote communication with a processing facility.

Examples of seller's devices that may be non-communicating include butare not limited to vending machines and parking meters that may not beeasily or cost effectively upgradable to utilize a network tocommunicate with a service provider. In some implementations, in orderto support performance of transactions, such non-communicating seller'sdevices (NCDs) 801 may be equipped with a display 804, optical receiver802 and processing capability 806. The NCD 801 displays an opticalrepresentation of information 820 required to process the transaction.The information may include an amount and an encrypted messageindicating to a device 808 controlled by a service provider or financialinstitution that the transaction is legitimate. The opticalrepresentation is read by a receiver 807 of the buyer's device 800. Thebuyer selects an instrument of payment and optionally entersauthentication information and an amount of payment such as describedabove with regard to FIGS. 1 and 9. Transaction information 822including one or more of the amounts indicated by the buyer's device andseller's device, selected instrument of payment, indication ofauthentication of user, and the encrypted message are transmitted todevice 808 via a network 810 using the buyer's device 800. Device 808verifies the transaction using both the encrypted information and theindication of authentication, and checks for a match between the amountsentered by the seller's device and buyer's device. If the authenticationis verified and the payment amounts match then device 808 promptspayment to be made to the seller's account such as described above withregard to FIGS. 1 and 9. Device 808 also generates an encrypted paymentauthentication information 824 which is transmitted to the buyer'sdevice 800 via the network 810. The buyer's device generates an opticalrepresentation 824′ of encrypted payment authentication information 824,e.g., using a display 809 The optical representation 824′ is read by thesellers' device 801 using a receiver 802, converted to an electricalrepresentation, and decrypted. If the decrypted message indicates thatdevice 808 prompted payment in the expected amount then device 801prompts provision of the goods or services associated with thetransaction.

A wide variety of security measures can be implemented to protect theuser's sensitive data. For example, sensitive data stored on a user'sdevice may be encrypted. Password and biometric access protections mayalso be used. Further, if a user's device is lost or stolen then aninstruction may be sent to the device to prompt deletion of thesensitive data. For example, the user can contact the service provideror use the service provider's website to prompt data deletion anddisabling of the App on the device. Security may be enhanced by usingmultiple layers of security, e.g., to select an instrument of payment.Further, the seller's App may prompt deletion of any sensitive data fromthe seller's device once the transaction is complete. Transactiondetails may be made available on secure pages on a website. Acombination of any two or more of these and other security protectionfeatures can be applied.

In some examples, the optical representation of data can be directionalor passive or both. For example, the representation can be considereddirectional if the representation cannot be read from all directions,for example, if the display is planar and has a narrow field of view, orfor other reasons. In some instances, the representation can beconsidered passive because the image may be detectable or readable onlyby reflection of incident light from the representation. In some cases,for example, a vending machine or a parking meter, the representationcould be a simple printed card or sign. However, the presentation neednot be directional or passive.

While the invention has been described by way of example and in terms ofthe example embodiments, the invention is not limited to the disclosedembodiments. On the contrary, it is intended to cover a wide range ofimplementations of each of its features. Therefore, the scope of theappended claims should be accorded the broadest interpretation.

We use the term transaction data broadly to include, for example, everykind, combination, size, format, configuration, sequence, arrangement,and content of data, historical or current, that describes, refers to,or relates to a transaction, such as demographic, private, identifying,or characterizing information about one or more parties to thetransaction; identity, quantity, size, model, duration, style, or othercharacteristics of one or more products or services involved in thetransaction; price, currency, timing, payee, payor, financialinstrument, financial institution, clearance information, or othercharacteristics of the consideration paid in the transaction; accountinformation, identifying number, security code, and othercharacteristics of a credit, debit, or other card or account of any kindto be used for making the payment; and any other information associatedwith the transaction.

We use the term transaction broadly to include, for example, any presentor future exchange of consideration between two parties, such as apurchase, sale, lease, investment, donation, pledge, or barter, or anycombination of two or more of those. We sometimes use the termcommercial transaction interchangeably with transaction and in somecases to mean that the transaction is one that occurs in commerce.

We use the term buyer broadly to include, for example, any party or itsrepresentative or agent who is acquiring consideration, oftenconsideration other than money, in a transaction.

We use the term seller broadly to include, for example, any party or itsrepresentative or agent who is acquiring consideration, often financial,in a transaction.

For completeness and convenience, below we have set forth the text ofthe provisional application referred to at the beginning. We have alsoincluded the figure of the provisional application as FIG. 13 of thisapplication.

Synopsis

Aspects of the invention provide short range communication by generatingan optical representation of data that is presented on a display of afirst device and read by a second device. The “sending” and “receiving”devices may include, but are not limited to mobile computers, PDAs,tablets, mobile phones, digital displays, cameras (e.g., CCD array) andscanners. The optical representation can be processed to yield the data.

The optical representation can take any of various forms. For example,barcodes, High Capacity Color Barcodes (HCCBs), matrix barcodesincluding Quick Response (QR) codes, tags, and other forms may be used.A barcode is an optical machine-readable representation of data based onvarying the widths and spacings of parallel lines (one dimensional), orusing various geometric patterns (two dimensional). A HCCB is a twodimensional barcode using clusters of colored triangles instead of thesquare pixels traditionally associated with 2D barcodes. A matrixbarcode is a multi-dimensional barcode. A QR code is a specific type ofmatrix barcode developed for the automotive industry. A Microsoft Tag isan implementation of HCCB using 4 colors in a 5×10 grid. Tags can alsobe implemented in monochrome.

Generation and reading of the optical representation may be accomplishedwith known algorithms. For example, and without limitation, a binarystring or other data format can be translated into a QR code using anopen source or commercially available algorithm, presented on a display,and read with another device using an open source or commerciallyavailable algorithm. Algorithms which also encrypt the data might beused, but need not necessary be used for all applications. For example,the devices involved in the optical communication may be placed in suchclose proximity for display and reading that the optical representationcannot feasibly be read by a rogue device. Such communication isadvantageously more secure than RF communications, including near fieldcommunications (NFC), which are susceptible to interception by roguedevices.

The presentation of the data can be directional and passive. Thepresentation is directional because the display is planar and cannot beread from all directions. The presentation can be passive because theimage may be detectable only by reflection of incident light. However,the presentation need not be directional or passive.

The invention may be particularly suitable for performing financialtransactions. For example, data which represents a means of payment suchas a credit or debit card can be represented optically and read byanother device such as a mobile phone or point-of-sale (POS) reader inorder to cause a payment to occur.

The invention can advantageously be implemented using existing mobiledevices. For example, programs for generating and displaying the opticalrepresentation, reading the optical representation, and translating theoptical representation into the original data may be implemented inapplications which can be downloaded to mobile phones, PDAs, tablets andlaptops, e.g., from “app stores” such as Amazon Appstore, Android and/orApple. Although wireline connectivity could be utilized, mobile devicesthat are WiFi enabled or have built in wireless (3G) capability areparticularly suitable for generating and presenting the image to make apayment. The widespread use and availability of “smartphones” presentsthe possibility that accepting payment via credit/debit card may becomepractical for individuals and organizations for which it is currentlyimpractical. In other words, a mobile phone can be used instead of a POScard reader device to accept payment by credit or debit card. Further,it helps obviate the need for carrying physical cards and cash to makepayments.

The second device (receiving device) may translate the opticalrepresentation into the original data. Alternatively the second devicemay send the optical representation or some variant of the opticalrepresentation to another device for translation.

In one embodiment the receiving device communicates directly with aserver of the organization associated with the means of payment, e.g.,the bank that issued the credit/debit card. In an alternative embodimenta third party (Company) may process transactions for all credit/debitcards that have been registered by a user with the Company. Oneadvantage to this embodiment is being able to host all the users'credit/debit card information in a well organized and highly securedfolder on their mobile phone, thereby reducing the need for a physicalwallet. To that end, the Company may offer a free service for the usersto register their loyalty cards as well. The revenue is generated fromcredit/debit card transactions and advertising and marketing based oncollected information, and not from the sale of technology. Even thoughtechnology is an important part of the service the Company offers, it'snot the main sources of revenue.

The Transaction on the Consumer/Buyer Side

The customer first registers with the Company (including acceptance ofthe terms of use) on its website. The customer then uploads informationabout their credit/debit cards. The information is associated with thecustomer's account on the Company's website. Based on built in industryestablished protocols, the system categorizes credit/debit cards infolders such as bank cards, department store credit cards, gas companycredit cards, loyalty cards, etc. and offers the organized folders tothe customer for further customization based on customer's preferences.Once the settings are saved, the customer downloads the Company's Appfrom the market and signs in with the credentials already established onthe Company's website. The App then downloads the customer's on-filecredit/debit card information to his/her smartphone. The securitysettings (over and above minimum requirements of the Company) that havealready been chosen by the customer will also download to the phone. Thecustomer then proceeds to the retail location where he/she will makehis/her next purchase. At the checkout counter, the customer simplyopens the App, goes through the security steps (PIN' s can be customadded to any of the stages by the customer) and chooses the credit/debitcard he/she wants to use by tapping through the folders. Once thecustomer taps the election button “Use This Card” and inputs the PIN atthat stage as well as the purchase price (optional; to avoid pricediscrepancy), a QR code (or M.S. tag) image appears on the customer'sdevice. The image contains all the necessary information for processinga credit/debit card transaction. This information could be identical tothe information presented in the magnetic strip of a conventionalcredit/debit card. The clerk then scans the QR code (or M.S. tag) with ascanning device (similar to barcode scanners) that is capable ofextracting the necessary information and feeding it into the retailer'sPOS system. This info is then processed in the same manner thatcredit/debit card information is currently being processed and the saleis completed through either the Company's systems or the credit/debitcard company's system. In the case of the latter, the credit and salesdata are accompanied by a special message that identifies thetransaction to the credit/debit card company as one generated by theCompany's service. In either case, the Company can receive a percentageof the transaction fee charged by the credit/debit card company. Therevenue stream can be almost limitless because the Company's serviceacts as the user's virtual wallet and the Company collects transaction(interchange) fees from all users' credit/debit cards. The service hasthe potential to grow worldwide as some many other countries have shownmore readiness to use wireless technology for commerce than the UnitedStates)

Security

To address the ever increasing concern for security issues regarding thecollection of credit data from members, the following measures areanticipated. The users will be selecting usernames and passwords to setup their online accounts on the Company's website. The downloadedinformation onto the users' smartphones may also be protected by atleast two layers of security which are customizable by the user. Thefirst level is encountered when the user initiates the App. The secondlevel is encountered after a specific card is selected, but before theappropriate QR code (or M.S. tag) appears that allows the card holder'saccount to be charged. The customer can add additional password orsecurity levels through the customization features on the website (or onthe smartphone) which will be downloaded to the App. If a user's phoneis lost, while the above mentioned security levels protect the user, theuser can simply log onto the account on the website and totally disablethe App. In addition, a toll free number (collect for internationalcallers) will provide a menu to log in and disable the App when accessto the website is not available or less convenient. In addition, theusers' information can be protected and insured against unauthorized usewith a minimal exposure to the user.

The Company will likely establish a highly secured server to hold thecredit information provided by the users. Multiple layers of security,encryption and scrambling of data may also be employed to provide theusers with the confidence needed to sign up for this service.

The Transaction on the Retailer/Seller Side

For merchants currently conducting credit/debit card transactions, asmall enhancement to their POS system allows scanning of the QR Code (orM.S. tag) presented by the user-buyer, which triggers the transmissionof the secure sales info to the Company's systems for processing. Oncethe QR Code (or M.S. tag) is scanned, the transmission of the creditinformation is the same as the conventional credit/debit card sales andcan be made by the same system currently in use. No credit informationis retained by the POS system.

For sellers not currently enrolled for processing credit/debit cards,the process is simple. Once registered and approved by the Company,anyone with a smartphone can process credit/debit card transactions bysimply downloading the Company's App that is capable of scanning andprocessing QR codes (or M.S. tags) presented by the buyer usingCompany's App (for the buyer side), and transmitting it along with thesales information to the Company for processing. The App specificallydesigned for the seller will provide a mobile Point Of Sale systemcapable of conducting sales transactions, adding taxes, issuing refunds,etc. This process allows any smartphone to become a card reader. Smallretailers, salespeople, or even individuals (P2P) who meet the Company'squalification process, can now accept and process credit/debit cardtransactions. The entire sales process can be carried out using smartphones which transmit the complete sales info to the Company's systemvia the internet or cellular network. This data is accompanied by a codegenerated by the App which the Company's system recognizes asverification of a legitimate transaction initiated by anauthorized/approved user. Once the transaction is transmitted, thebuyer's info is removed from the seller's QR (or M.S. tag) reader. Thebuyer and the seller will both receive confirmation e-mails, and/or textmessages containing only the pertinent transaction information. Theywill also be able to review all their transactions on their secure pageson the Company's website organized by card, date or any other criteriathey choose. This convenience for small businessmen and retailersencourages the use of the Company's App/system and is an incentive forthe major credit/debit card companies to partner with the Company tocapture the additional sales transactions that have historically beenconducted through exchange of cash and/or checks. This additionalcapability which competes with cash and payment by check provides addedincentives for the credit card companies to partner with the Company.

What is claimed:
 1. A method comprising: receiving, with a first device,information for completing a transaction between a first entityassociated with the first device and a second entity associated with asecond device; the first device causing a payment to be made to thesecond entity by communicating with a third device via a communicationsnetwork; the first device receiving a payment confirmation from thethird device; and the first device providing the payment confirmation tothe second device, thereby completing the transaction.
 2. The method ofclaim 1 wherein the information for completing the transaction isencrypted and comprises a sum required to complete the transaction, andcomprising the first device providing the encrypted information forcompleting the transaction to the third device.
 3. The method of claim 2comprising the first device indicating to the third device a sumassociated with the payment.
 4. The method of claim 3 comprising thethird device decrypting the information for completing the transaction,and comparing the sum required to complete the transaction with theindicated sum associated with the payment.
 5. The method of claim 4comprising the third device encrypting the payment confirmation andproviding the encrypted payment confirmation to the first device inresponse to determining that the sum required to complete thetransaction matches the indicated sum associated with the payment. 6.The method of claim 5 comprising the encrypted payment confirmationindicating an amount paid.
 7. An apparatus comprising: a first devicethat receives information for completing a transaction between a firstentity associated with the first device and a second entity associatedwith a second device, wherein the first device causes a payment to bemade to the second entity by communicating with a third device via acommunications network, and wherein the first device receives a paymentconfirmation from the third device, and wherein the first deviceprovides the payment confirmation to the second device, therebycompleting the transaction.
 8. The apparatus of claim 7 wherein theinformation for completing the transaction is encrypted and comprises asum required to complete the transaction, and wherein the first deviceprovides the encrypted information for completing the transaction to thethird device.
 9. The apparatus of claim 8 wherein the first deviceindicates to the third device a sum associated with the payment.
 10. Theapparatus of claim 9 wherein the third device decrypts the informationfor completing the transaction, and compares the sum required tocomplete the transaction with the indicated sum associated with thepayment.
 11. The apparatus of claim 10 wherein the third device encryptsthe payment confirmation and provides the encrypted payment confirmationto the first device in response to determining that the sum required tocomplete the transaction matches the indicated sum associated with thepayment.
 12. The apparatus of claim 11 wherein the encrypted paymentconfirmation comprises an amount paid.